Featured News
In 2023, Japan’s regulated sports wagering nearly reached JPY8 trillion (€47.6 billion), representing a modest increase of 0.3 percent compared to the previous year. While this growth rate marked the lowest in a decade, it still amounted to the highest betting handle Japan has witnessed during this period.
Horse racing dominates betting landscapeAccording to a report by Gaming Intelligence, the total horse racing wagering accounted for the lion’s share, reaching JPY4.35 trillion (€25.9 billion) and comprising 54 percent of Japan’s overall betting activity. This marks the third consecutive year that racing wagers have surpassed the JPY4 trillion (€43.8 billion) mark. Despite a surge in attendance at Japan Racing Association (JRA) racecourses, with a notable 66 percent increase to 4.6 million attendees, a staggering 98 percent of wagering occurred off-course.
Variety in wagering preferencesBetting on motorboat races saw a slight decline of 2 percent from 2022, totalling JPY2.39 trillion (€14.2 billion) across 4,618 race days. Conversely, cycling races experienced a 5 percent increase in handle, reaching JPY1.15 trillion (€6.8 billion) from 2,725 race days. Motorcycling races, although the smallest sector in terms of wagering, witnessed a marginal uptick of 0.6 percent, amounting to JPY108 million (€643.1 million) in bets.
Implications and trendsDespite the modest growth rate, Japan’s record-breaking sports wagering in 2023 signifies the nation’s sustained interest in regulated betting activities. The enduring popularity of horse racing, coupled with the steady performance of other sporting events, underscores the diverse preferences within Japan’s betting landscape. As the industry continues to evolve, stakeholders will closely monitor trends and adapt strategies to capitalize on emerging opportunities.
Japan’s first casino project breaks ground in OsakaMeanwhile, earlier this year, Japan began constructing its Osaka’s integrated resort (IR) project, marking the country’s inaugural venture into the realm of casinos. The commencement of this project followed the Japanese government’s approval of a revised implementation agreement, symbolizing a significant shift in the nation’s approach to gaming regulation.
Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details here.
The Star Casino in the centre of Sydney, a popular gaming hub, found itself in the embroiled in an unexpected controversy. A software glitch in the casino’s “ticket in, cash out” (TICO) machines led to the establishment inadvertently giving away more than $2 million in cash over a span of 13 days in July last year.
The glitch was introduced through a software update to the TICO machines. When players inserted more than one ticket into a machine, it returned one of the tickets along with the total cash, and then allowed that ticket to be cashed out repeatedly. This error went unnoticed by the casino operators for six weeks, during which time 43 people exploited the glitch to withdraw free money.
Among the beneficiaries was Thanh Lan Le, a recovering gambling addict. She relapsed after watching a friend repeatedly cash out using the glitch. Over the next 10 days, she withdrew $57,265. By the time she left the casino, all but $5,000 of the money was gambled away.
The casino’s response to the glitch was swift and severe. It reported the 43 “lucky” cash recipients to the police, who arrested Le and an unspecified number of others on charges of fraud, participating in a criminal group, and knowingly dealing with the proceeds of a crime. Le pleaded guilty to a single charge of dishonestly obtaining property by deception and offered to repay the money.
Ethical and technology challengesThe Star Casino’s manager, Nicholas Weeks, blamed “a very significant failure across a large number of people and teams” for the casino’s inability to detect the glitch sooner. This incident has led to a second NSW Independent Casino Commission inquiry into operator Star Entertainment, which had previously been found unsuitable to hold a Sydney casino license in 2022 due to allegations of money laundering, criminal infiltration, and fraud.
The latest inquiry also heard from former Star CFO Christina Katsibouba, who testified that the casino’s head of investor relations, Giovanni Rizzo, asked her to manipulate the financial records to hide the loss when the company presented its half-year earnings report in February. Katsibouba refused to comply.
This incident has highlighted the potential pitfalls of technology in the gaming industry, and the importance of robust risk management frameworks and balances to prevent such errors from occurring. It also raises questions about the ethical responsibilities of casinos in dealing with such situations, and the impact on individuals who unwittingly find themselves on the wrong side of the law.
In April this year, the voluntary EU code of conduct incorporated a vow to refrain from generating, utilising or spreading “any form of deceptive content”. As part of an EU charter on fair campaigning, European political parties consented to refrain from disseminating unmarked deepfakes ahead of the June election. A comparable law has been enacted in the UK this month. Under the Online Safety Act, passed the previous year, the distribution of deepfakes was declared unlawful. On March 13 of this year the AI Act was passed which aims to make sure that AI systems in the EU respect fundamental rights. Its objectives are to create innovation and investment in AI in a single EU market.
Rapid Advancement of AIThe rapid advancement of AI technologies is bringing about remarkable opportunities and hurdles for the gaming industry. Professionals at government agencies, think tanks, gaming events and conferences are extensively exploring and discussing the key problems. The industry is questioning if AI has overstepped its boundaries. When does virtual reality become overwhelming? Is there a potential threat to people? Are casinos at a higher risk of security attacks and how can they safeguard their data and AI versions? What regulations need to be established to ensure the safety of both casinos and individuals?
Experts in the gaming industry say that explicit regulation by authorities is necessary to ensure the ethical use of AI in the casino business. They believe that governmental and regulatory entities should create unambiguous, enforceable rules and structures that define proper procedures for AI implementation, tackling aspects such as data security, responsibility, and algorithmic clarity. The regulations introduced this month and those still being released should be versatile enough to adjust to the rapid speed of tech evolution, as obsolete laws can occasionally create more difficulties than benefits.
AI legal insightsDoctor Ian Gauci, a partner at GTG specialising in AI law said to SiGMA News, “In Europe now casinos should make sure that if they already make use of AI that it complies with the requirements of existing law’s like GDPR as that is further emphasised in the new AI ACT. They also need to predispose themselves for the up and coming new AI act, so that they can act immediately around any banned AI. The casinos here would also have to distinguish between them solely deploying the AI, as opposed to developing and deploying it.”
The consensus among professionals such as Gauci is that international collaboration on AI-related laws will be essential to maintain uniform standards, considering the worldwide scope of the technology and the gaming industry.
Gauci added, “The extra part is that in addition to these new AI laws, the casinos will also need to examine their obligations on what is prohibited, and where there is high risk (AI act). They will also have to have a conformity assessment of a lot of things, such as data, design, cyber security, and other audits which are also important. It’s beyond ethics or human rights as you are regulating the operational parameters of the technology and imposing risk and governance frameworks on importers and distributors. It is dealing with big risk AI and interfacing with another authority which is the market surveillance authority in the EU.”
What’s next?Industry experts concur that as casinos advance towards the integration of ethical AI, it involves not just compliance with rules; it’s also about how technology can improve both the gaming industry and the users experience while complying with ever changing regulation.
Indonesia’s Ministry of Communications and Information Technology (Kominfo) has announced the formation of a multi-agency task force in a decisive move against online gambling.. This initiative is a significant step in the country’s ongoing battle against online gambling, an activity that remains entirely illegal across the nation. The task force, as revealed by Kominfo, will consist of representatives from various government agencies.
The government has already implemented a series of stringent measures
The first line of defense is the Registration Requirement. Every website operating within the country’s borders must register with the government. This registration process is not merely a formality. It equips the authorities with broad powers, compelling platforms to disclose user data when required.
Next, the government has enacted the Intermediary Liability Regulation (MR5) in 2020. This law mandates websites to grant Indonesian law enforcement access to any user content, including private communications and storage. Any failure to comply can result in the website being blocked entirely, a stern reminder of the government’s resolve.
Content Removal from social media and interna Social media and internet platforms are obligated to remove content deemed unlawful at the request of any government agency. The response time is swift – urgent requests must be addressed within four hours, while non-urgent ones have a 24-hour window.
The government also wields the power of Penalties for Non-compliance. Internet and social media platforms that fail to comply with the rules face the risk of fines. Repeat offenders could find their platforms blocked in Indonesia, and their staff could even face criminal sanctions.
These include the Financial Services Authority (OJK), the Financial Transaction Reports and Analysis Centre (PPATK), and the police. This information was reported by the local media outlet, Bernama. The task force’s primary objective is to combat online gambling, with each agency playing a specific role. Kominfo will supervise the digital space, OJK will manage accounts, PPATK will oversee fund flows, and the police will be responsible for arrests and investigations.
Resolute standThis was stated by Usman Kansong, the Ministry’s Information and Public Communications Director. In addition to domestic efforts, the task force will collaborate with Interpol to tackle cross-border cases. This international cooperation is crucial given the government’s previous struggles in blocking foreign operators. Minister Budi Arie further emphasized the Ministry’s commitment by issuing a warning to all social media platforms, cellular operators, and internet service providers against facilitating any form of online gambling promotion. He stated, “We have done everything within the authority of Kominfo.
We from the Ministry of Communication and Information are fully determined. At the beginning of the week, I gathered all our teams at Kominfo to work together to eradicate online gambling.” This task force is the latest in a series of actions taken by Indonesia against online gambling. In 2012, the country announced similar plans to eliminate such activities, citing the significant amount of money gambled by locals on the Euro 2012 football championship as a primary concern.
Indonesia’s multi-agency task force represents a united front in the country’s war against online gambling. It is a testament to the government’s determination to curb this illegal activity and protect its citizens from the potential harms associated with it. The success of this initiative will undoubtedly set a precedent for other nations grappling with similar issues.